In the latest sign that energy producers are still pumping too much oil, Koch Supply and Trading, the US oil firm, has booked a supertanker for six months to store about 2 billion barrels of crude off the east coast of the Emirates.
The move to stockpile oil at sea near Fujairah, a Middle East fuel bunkering hub, is part of a worldwide trend towards offshore storage that has developed because onshore oil depots are full, and most oil traders expect prices to rise in coming months, analysts said.
But it also means global oil demand is falling faster than producing countries, primarily those within OPEC, are cutting output.
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